• Sunday, May 26, 2024
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Presidential CNG initiative to convert one million cars by 2027 – Programme director

CNG-powered vehicles will save Nigeria $2.5bn yearly- FG

…As Mezovest CEO urges partnership with private sector

The Programme Director of the Presidential Compressed Natural Gas (CNG) initiative, Michael Oluwagbemi has said that the Federal Government would, through the initiative, convert one million vehicles to CNG by 2027.

Oluwagbemi also said that while the government would not foot the bill for the conversion of all these vehicles, it has devised a mass conversion incentive programme that will be predominantly driven by the private sector.

Speaking at the Avalon Policy Dialogue Thursday, he disclosed that down payments have been made for 20,000 conversion kits set to be available within the next month.

According to him, plans are underway to establish conversion sites nationwide through affiliated partners.

Read also: CNG: Tinubu to launch 200 buses in May

Oluwagbemi further said that the programme has already seen significant interest, with 85 conversion sites registered under the affiliate programme.

“Since December 2023, the initiative has attracted $50million in investments, primarily focused on refuelling and conversion infrastructure,” he stated.

According to him, “Over 120 applications for refuelling stations are currently underway pending approval at Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMPDRA) and we are ensuring it goes through every regulatory hurdle. Most of it will deliver additional CNG dispensing capacity at current refuelling price.”

He emphasised the role of the private sector, saying, “I am confident that the private sector recognises the immense opportunity within the CNG sector and will continue to invest, bridging the gap and driving the adoption of CNG.”

On his part, the Chief Executive Officer of Mezovest, Tosin Thompson, commended the Federal Government for the CNG initiative, describing it as timely and strategic for revitalising the economy.

He acknowledged the role that the Presidential CNG Initiative has been playing, adding that collaboration with the private sector will be key to the success of the initiative.

“It is obvious that the Federal Government is serious about driving CNG adoption and we in the private sector are delighted that there is adequate demand stimulation and incentive that would give us the confidence to invest long term in the sector,” Thompson said.

He added that beyond plans to expand already existing conversion sites and invest in refuelling infrastructure, “we are looking into developing the human capital required to play in this sector for the long term.”